How do I obtain written consent from joint-clients?
The ASIC Corporations (Consent to Deductions – Ongoing Fee Arrangements) Instrument requires each joint account holder to provide their written consent by signing or agreeing in writing (including electronically) to the terms of the written consent.
This means that if you require clients to sign the consent, each account holder must sign it. Alternatively, if you are requesting their consent via an electronic link, you must obtain a written response from each account holder. In either case, all joint account holders must provide their written consent for it to be considered valid.
But, in addition to satisfying the ASIC Corporations (Consent to Deductions – Ongoing Fee Arrangements) Instrument, it’s worth noting that the Financial Adviser Standards and Ethics Authority (FASEA) Standards also emphasise the importance of obtaining free, prior, and informed consent from clients.
Under Standard 3 of the FASEA Code of Ethics, financial advisers are required to obtain their clients’ informed consent before providing any advice or financial services. This means that clients must have a clear understanding of what they are agreeing to, and they must have the freedom to accept or decline the proposed services without any pressure or coercion from the adviser.
In the case of joint account holders, each person must provide their own informed consent, and all parties must be aware of the terms and conditions of the consent. It’s also important to note that consent must be given freely, without any undue influence or pressure from the adviser or any other party.